Correlation Between BancFirst and Glacier Bancorp
Can any of the company-specific risk be diversified away by investing in both BancFirst and Glacier Bancorp at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining BancFirst and Glacier Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BancFirst and Glacier Bancorp, you can compare the effects of market volatilities on BancFirst and Glacier Bancorp and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in BancFirst with a short position of Glacier Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of BancFirst and Glacier Bancorp.
Diversification Opportunities for BancFirst and Glacier Bancorp
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BancFirst and Glacier is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding BancFirst and Glacier Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glacier Bancorp and BancFirst is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on BancFirst are associated (or correlated) with Glacier Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glacier Bancorp has no effect on the direction of BancFirst i.e., BancFirst and Glacier Bancorp go up and down completely randomly.
Pair Corralation between BancFirst and Glacier Bancorp
Given the investment horizon of 90 days BancFirst is expected to generate 0.82 times more return on investment than Glacier Bancorp. However, BancFirst is 1.22 times less risky than Glacier Bancorp. It trades about 0.04 of its potential returns per unit of risk. Glacier Bancorp is currently generating about 0.02 per unit of risk. If you would invest 9,264 in BancFirst on August 27, 2024 and sell it today you would earn a total of 3,364 from holding BancFirst or generate 36.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BancFirst vs. Glacier Bancorp
Performance |
| Timeline |
| BancFirst |
| Glacier Bancorp |
BancFirst and Glacier Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BancFirst and Glacier Bancorp
The main advantage of trading using opposite BancFirst and Glacier Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BancFirst position performs unexpectedly, Glacier Bancorp can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Glacier Bancorp will offset losses from the drop in Glacier Bancorp's long position.| BancFirst vs. Glacier Bancorp | BancFirst vs. BOK Financial | BancFirst vs. First Financial Bancorp | BancFirst vs. First Bancorp |
| Glacier Bancorp vs. Fifth Third Bancorp | Glacier Bancorp vs. Zions Bancorporation | Glacier Bancorp vs. Huntington Bancshares Incorporated | Glacier Bancorp vs. Comerica |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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